1. What discussions has the Welsh Government had with the UK Government regarding the potential benefits of creating low-tax investment zones in Wales? OQ58563

We are in preliminary discussions with the current UK Government Minister to understand the investment zone proposals and potential implications for Wales in more detail. Any initiative that comes forward for Wales would need to align with our policies on fair work and the environment, for example, as well as generating genuinely additional growth, rather than simply displacing business activity.

Thanks, Minister. I recently met with the Federation of Small Businesses Wales to discuss the problems facing companies trying to grow and thrive in the current difficult economic climate. Against a backdrop of uncertainty, it was made clear that alleviating cost pressures for small and medium enterprise must be a priority for the Welsh Government. In that context, there was dismay and disappointment at the scepticism expressed by Welsh Ministers about the UK Government's policy of investment zones, which are designed to drive economic growth by a variety of tax, regulatory, innovative flexibilities and planning simplifications. These include 100 per cent relief from business rates on newly occupied business premises. Minister, given the UK Government's intention to establish investment zones, will you commit to engage constructively with Westminster to ensure Wales is not left behind so that Welsh businesses can capture the potential for increased economic activity and create the high-skilled jobs that we all want to see? Thank you.

Well, you're right, it is a difficult time for families and for businesses who are struggling to survive, with the uncertainty and unstable picture at a UK level. That has a real impact for all of us. The cost of business finance has increased, as well as individual costs for home owners as well. Of course, I've noticed inflation is just over 10 per cent in the updated figures today. I think trying to suggest that the Welsh Government taking a properly interested and constructive role in the investment zone proposal that has been made is leading to dismay and is the real cause for fear and uncertainty for the future of businesses simply doesn't reflect the reality of where we are. In my direct engagement with the Federation of Small Businesses they have never expressed anything approaching dismay at the approach that I am taking in engagement with UK Ministers. I need to understand properly what the proposals are, what the proposals mean for Wales, what they mean for devolved taxation, and what they mean for the revenue realities of this Government, bearing in mind the fact that we expect to face a tightening, a reduction, a cut in our budget when the Halloween budget is finally delivered. And we also again need to understand what will happen to investment zones near our border. Investment zones are proposed in the south-west and indeed there's a proposal to impose an investment zone in Cheshire West and Wirral, and these things will matter to us. I need to understand the policies, I need to understand what it really means, and I would ideally like to have a conversation that looks much more like the end of our free ports discussion, rather than the megaphone shouting in the year and more that preceded that agreement.